IV97319: MODIFICATIONS - LEASE EXTENSION (FUTURE OPERATING) CALCULATING INCORRECTLY

APAR status

• Closed as fixed if next.

Error description

• PROBLEM DESCRIPTION:
  
  Modifications - Lease Extension (Future Operating) calculating
  incorrectly
  
  Extended problem description:
  
  When an Operating lease is modified, the new ROU Asset balance
  should be calculated as the amount of change in the liability
  balance is added
  to (or subtracted from) the prior period ROU Asset balance
  immediately preceeding the modification.
  
  Previously this was tested onc5/18 at any lease and then still
  worked appropriately.
  As of 6/13, this no longer works.
  
  
  ENVIRONMENT:
  
  platform/application version: 10.5.2/3.5.2
  
  STEPS TO REPLICATE:
  
  1. Create a lease with Accounting Start and End Dates of 1/1/17
  and 12/31/19
  Payments in Advance
  2. Create a Rent Payment Schedule with the following parameters:
  Monthly frequency
  Current period start date = 01/01/2017
  $10,000 basis
  Create 2 schedules, adjust every 12 months
  $1,000 fixed increase
  3. Run review assumptions
  Select  Initial Review
  Set the Fiscal Period to '2017 - 07' (The Microsoft environment
  is on a
  Fiscal Calendar 1/1/17 = 2017 - 07)
  Discount Rate = 4%
  4. Set Lease Classification to  Operating
  5. Submit the lease for review
  6. After the lease is Active, do the following
  Revise -->Amend
  Add another annual payment schedule (1/1/2019   12/31/2019) with
  a
  basis of $12,000 per month
  7. Run Review Assumptions
  Select  Initial Review
  Select the Fiscal Period for the effective date of the
  modification (in
  this scenario the modification is February 2018, which is Fiscal
  Period
  2018   08 in the Microsoft environment)
  Change Accounting End Date in Review Assumptions to 12/31/2019
  8. Submit lease for review and notice descrepancies.
  

Local fix

• n/a
  

Problem summary

• Start ROU Asset value is now calculated correctly when there is
  an amendment happening for an Operating lease. The changes are
  made to the following workflows:
  triContract - Subflow - Likely Term - Calculate Amend Asset
  Value
  triRealEstateContract - Synchronous - triRevise
  

Problem conclusion

• Start ROU Asset value is now calculated correctly when there is
  an amendment happening for an Operating lease.
  This is targeted to the 1h2017 Application/OM Release.
  

Temporary fix

Comments

APAR Information

• APAR is sysrouted FROM one or more of the following:

• APAR is sysrouted TO one or more of the following:

Modules/Macros

• 999
  

Fix information

Applicable component levels